APTMA requests govt to collect Cess as per SC judgement under post-GIDC Act, 2015

August 20, 2020 (MLN): All Pakistan Textile Mills Association (APTMA) has requested the Ministry of Energy that the collection of Cess from all industrial consumers as per Supreme Court judgment should only be post-GIDC Act, 2015.

The association has requested the exemption from payments as the export-oriented textile industry faces the liquidity crisis due to a decline in global economic activities. The notification said that the export industry sells at the international market and prices are market-driven. There is no possibility of being collected the Cess or having costed the Cess into the sales prices as that would have rendered Pakistan's Exports in competitive.

According to notice issued to the Ministry of Energy, Section 8 of the Act of 2015 has exempted from payment all industrial consumers (except fertilizer fuel stock) of natural gas as have not passed on the GIDC burden. This Section may be given full effect.

It is pertinent to mention that Section 8 of the GIDC Act, 2015 provides validation of Cess levied, charged, collected, or realized by the companies from various sectors under the GIDC, Act, 2011, and GIDC Ordinance, 2014.

APTMA has informed the Ministry of Energy that it has requested both distribution companies, SNGPL and SSGCL to pay the installments in accordance with the judgment i.e. for the GIDC accrued post-2015.

According to the judgment of the Honorable Supreme Court on GIDC Act 2015, in section 8, dated August 13, 200, all industrial and commercial entities which consume gas for their business activities pass on the burden to their customers/clients, therefore, all arrears of 'Cess' that have become due up to 31.07.2020 and have not been recovered so far shall be recovered by the Companies responsible under the GIDC Act, 2015 to recover from their consumers. However, as a concession, the same be recovered in twenty-four equal monthly installments starting from 01.08,2020 without the component of late payment surcharge. The late payment surcharge shall only become payable for the delays that may occur in the payment of any of the twenty-four installments.

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Posted on: 2020-08-20T11:36:00+05:00

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